Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development
Abstract
:1. Introduction
2. Literature Review
3. Materials and Methods
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- Total investment, calculated by the International Monetary Fund (2021), which characterizes the availability of financial resources in the economy (we shall denote it as fr);
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- World giving index, calculated by Charities Aid Foundation (2021), which characterizes the level of corporate social responsibility (we shall denote it as cr);
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4. Results and Discussion
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- The analysis of multiple correlations has shown that the multiple correlation coefficient (R2) took the value 0.3745. This is a sign of the moderate connection between the indicators: the change of the sustainable development index by 37.45% is explained by the change of total investments in the economy and the world giving index (corporate social responsibility);
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- Variables multicollinearity test allowed obtaining the following results. Cross-correlation between the sustainable development index and total investments rsd,fr = −0.16. Cross-correlation between the sustainable development index and the world giving index rsd,cr = −0.35. Cross-correlation between the world giving index and total investments rcr,ft = 0.12. Therefore, multicollinear (duplicative) variables are absent;
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- F-test allowed obtaining the following results. At 105 observations in the sample and 2-factor variables (k1 = 2, k2 = 104 − 3 = 101), the table value F = 3.09. The observed value F = 8.32, i.e., it exceeds the table value (the test is passed);
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- The Student’s t-test allowed obtaining the following results. At the significance level df = 104, the table value F = 1.982. The observed value F = 20.65, i.e., it exceeds the table value (the test is passed).
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- Provision of tax preferences (e.g., tax subsidies or tax vacations) for the subjects of entrepreneurship, which are recipients of responsible investments;
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- Provision of attractive conditions for the inflow of responsible investments in the economy—e.g., based on special economic zones;
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- Setting requirements to the placement of responsible investments by private parties of the implemented and started projects of public-private partnership;
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- Compilation and publication in open access of the national ranking of responsible investors and responsible companies, which attract the largest total investments and use them with the largest contribution to the implementation of the SDGs.
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- absence of the necessity for the special attraction of investments in the economy amid a crisis;
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- the complicated structure of investments in the economy, in which responsible (and opposite—irresponsible) investments are distinguished.
5. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Criterion of Comparison | Financial Risk Management of Economic Growth (GDP) | Financial Risk Management of Sustainable Development |
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Manifestation of economic crisis | the slowdown of the rate of economic growth (reduction of GDP) | the slowdown of progress in implementing the SDGs (reduction of the sustainable development index) |
Financial risks, which increase in the conditions of economic crises | deficit (an increase of demand with a less vivid increase or decrease of the offer of investments) of investments for economic growth | deficit of responsible investments due to the insufficient (low or reduced) level of corporate social responsibility |
Structure of investments | simple—all investments are important and equally valuable | complex—only responsible investments are necessary and valuable |
Approach to economic crisis management | the attraction of investments for the financial support for the vectors of economic growth | the attraction of responsible investments through the stimulation of corporate social responsibility |
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Vagin, S.G.; Kostyukova, E.I.; Spiridonova, N.E.; Vorozheykina, T.M. Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development. Risks 2022, 10, 35. https://doi.org/10.3390/risks10020035
Vagin SG, Kostyukova EI, Spiridonova NE, Vorozheykina TM. Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development. Risks. 2022; 10(2):35. https://doi.org/10.3390/risks10020035
Chicago/Turabian StyleVagin, Sergei G., Elena I. Kostyukova, Natalia E. Spiridonova, and Tatiana M. Vorozheykina. 2022. "Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development" Risks 10, no. 2: 35. https://doi.org/10.3390/risks10020035